Which of the following actions taken by an organization leads to the creation of strong property rights?
A) using 360 degrees performance evaluation method for conducting employee appraisals
B) centralizing decision-making authority
C) giving innovative employees stock options proportional to the increase in profitability that can be attributed to their efforts
D) giving employees an opportunity to learn new skills with the help of job rotation

Question

Quizplus · Accepted Answer

Giving innovative employees stock options proportional to the increase in profitability that can be attributed to their efforts creates strong property rights as it incentivizes employees to create value for the organization and rewards them accordingly. This ownership stake also increases employees' commitment to the success of the organization. The other options do not directly relate to property rights.

Which of the Following Actions Taken by an Organization Leads